Swiss Data Agency Claims No Contact with Facebook Over Libra

Michael LaVere
  • David Marcus told Congress on Tuesday that the FDPIC would oversee data protection and security for libra. 
  • Swiss agency claims to have had no contact with Facebook.

The Swiss agency supposedly responsible for overseeing the data protection of libra reports having no contact with Facebook. 

David Marcus Goes Before Congress

In a hearing held before members of the US Senate Banking Committee on Tuesday, Facebook’s David Marcus attempted to quell concerns over libra’s security.

Marcus explained that data and privacy protections for the company’s digital currency would be under the regulation of the Swiss Federal Data Protection and Information Commissioner (FDPIC). 

However, FDPIC claims to have had no contact with Facebook. 

No Word From Facebook

According to a report confirmed by CNBC, the social media platform has yet to reach out to FDPIC, despite Marcus’s testimony to Congress. 

Hugo Wyler, head of communication at FDPIC, told CNBC, 

“We have taken note of the statements made by David Marcus, Chief of Calibra, on our potential role as data protection supervisory authority in the Libra context. Until today we have not been contacted by the promoters of Libra.”

Wyler left the door open for his agency to work with Facebook, but explained they would need more information before proceeding. 

He continued, 

“We expect Facebook or its promoters to provide us with concrete information when the time comes. Only then will we be able to examine the extent to which our legal advisory and supervisory competence is given. In any case, we are following the development of the project in the public debate.”

A spokesperson for Facebook confirmed that they have yet to contact the FDPIC.

Libra Facing Pressure

Since officially announcing the digital currency in June, libra has come under fire from regulators around the world. US Federal Reserve Chairman Jerome Powell claimed the digital currency posed “serious concerns” for money laundering and user protection. On Tuesday, Marcus was repeatedly grilled by senators with questions related to data privacy. 

Marcus also told Congress that the Swiss Financial Markets Supervisory Authority (FINMA), would be the main financial regulator for Libra. Unlike the FDPIC, the Swiss regulator has confirmed its partnership with Facebook.

Facebook appears to have kicked a hornet’s nest in the US Congress over issuing its digital currency.

Last week, an unofficial copy of a bill surfaced online with the title “Keep Big Tech out of Finance.” The bill was reportedly drafted by members of the House Financial Services Committee--who will meet with Facebook on Wednesday--with the goal of preventing large platforms from issuing their own currency. 

Trade.io Halts Trading Amidst Market Slow Down

Michael LaVere
  • Trade.io is halting all trading activity for an undetermined period of time. 
  • The exchange cites unfavorable market conditions and rising infrastructure costs as contributing to the decision. 

Cryptoasset trading platform Trade.io has announced a halt to its trading activities amidst the market slow down, while claiming that the suspension will only be transient. 

On Oct. 22, Trade.io announced a complete suspension of trading on its platform, citing low volume and activity in the crypto markets.  The announcement reassured investors that the suspension would only be temporary, 

Trade.io is not going out of business. The crypto exchange will be archived securely and pending the financial opportunity will be reopened at a future date.

In addition to unfavorable market conditions, Trade.io said there was pressure from massive marketing budgets and increased infrastructure costs. They also called out the abundance of scam projects in cryptocurrency resulting from the lack of regulation, including exchanges posting artificially inflated volumes. 

The announcement continued, 

This is purely a profit and loss decision. Despite the success of our re-launch, it has become clear to us that in current market conditions the exchange is a long way from turning a profit. Profits (and losses) directly affect the LP payouts.

Featured Image Credit: Photo via Pixabay.com